From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
We’ve been pounding the table about rising rates for over a month now.
It’s hard not to when they’re rising across the curve in both the US and abroad. Cyclical and value-oriented assets have increased in tandem, as energy and financials have become leadership groups.
We continue to see countries with heavy exposure to financials emerging from multi-decade bases. Just last month, the Euro Stoxx 600 made new all-time closing highs, while Italian equities reached their highest levels in 13 years.
But when we look further out on the curve, the long end hasn’t been keeping pace with shorter duration yields in recent weeks.